E-margin order

BSPL (Buy Stocks Pay Later)

Buy Stocks Pay Later is a margin trading facility - a way to afford a large number of stocks, or high ticket stocks at a small initial capital amount, with the rest amount paid in instalments. Margin Trading in simple terms is borrowing money from your broker to purchase stocks, also called a Margin Trading Facility (MTF), which is enabled with a margin requirement. Thus, margin trading helps one gain more buying power.

With BSPL (Buy Stocks Pay Later) MTF, you get to buy 4 times your capital investment as the rest is paid by your broker. This not only gives you extra buying power but also positions you with the added extra time for your positional trades. The rest of the amount would be paid back to the broker in a series of instalments.

You can buy stocks today and pay an E-margin up to T+275 days. Hence, with BSPL MTF, you’re able to hold on to your stocks for 275 trading days. A higher leverage means you have an opportunity to amplify your profit potential!


Why BSPL?

With this Margin Trading Facility (MTF), you have a chance of gaining an ROI that’s multiple times higher than what you would’ve earned if you had invested without BSPL. Once your stocks have earned a profit, it’s yours to keep while you pay back your broker the instalments along with the interest they charge. Even with the interest deduction from your ROI, it can be favourably profitable as compared to a smaller quantity of stocks bought without BSPL MTF.


How does BSPL work?

  • Opt for Buy Stock Pay Later at checkout
  • Once it’s approved, you pay for how much you can invest. This amount becomes 25% (or as decided by your broker) of the total purchase, and the rest is paid by your broker
  • The interest charged depends upon your broker
  • You pay back the borrowed funds through instalments

ETF through BSPL (Buy Stocks Pay Later)

To the delight of investors, SEBI released a circular stating that equity ETFs (Exchange Traded Funds) can also be used as collaterals, similar to equity stocks. This allows an investor to buy a position of 4 times their capital in ETFs. The concept of leverage stays the same, and the investor can gain a higher amount position with a smaller capital. HDFC securities offers its clients to buy select ETFs under BSPL. These include,

  • Index
  • Banking
  • Pharma
  • IT
  • International & other types of ETFs.

Key Features

-You can buy stocks/ETF today and pay on or before T+ 275 days. Avail the benefit of T+275, by agreeing to the terms & conditions while placing the BSPL order through our trading platforms - web and mobile app

- Enhance your buying power, and in turn, a chance to increase your return on investment, as you need to initially pay a small portion of the stock/ETF value.

- Amplify your profit potential due to an increase in the investment horizon

- A small delayed interest charge of around 0.05% per day on the outstanding amount, until your position is settled

- Provides higher leverage to benefit from short-term market fluctuations

Book
Take advantage of ultra-short term market movement with limited investment
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How does it work?

Login to your trading account, on web or mobile app

 

  1.  Click on Buy, then select the exchange             
  2.  Enter the first 3 characters & select the company            
  3.  Select the product as "E-margin"            
  4.  Enter the required quantity and price of the script  
  5.  Click on Know your Margin to calculate the margin requirement to place the order            
  6.  Place your order & track your order status in the order book            
  7.  To square off your transaction on or before T+275 days, select Open Positions

 

Buy Stock Pay Later has advantages like building an investment habit, convenience, additional time to buy what you want, and a high-profit potential. However, it’s easy to overspend and overlook the terms and conditions of your purchase. Just as the profit potential is high, a market fall can cause a hefty impact on the investor. Before availing BSPL, it’s crucial to read and understand the rules, terms and conditions, to be aware of how much you’ll be spending in total, and to know what obligations you’ll fall under in case you miss an instalment.

 

Videos

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- Get up to 4X leverage, means an opportunity to amplify your profit potential - Pay Later up to T+275 days.
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Enhance Your Buying Power with E Margin T+275 days
Enhance Your Buying Power with E Margin T+275 days
12-09-2023;
Enhance your Buy Power with E Margin
- Benefits of trading through E-margin -How to place E-margin Orders

Learn more

FAQs

How is the additional margin called during MTM process?

The additional margin is debited from the limits. It is the client's responsibility to check the adequacy of margins at all times and mark a hold on the required funds for increasing the limits in order to avoid Square off of the position/s by HDFC securities.

What is BSPL (Buy Stocks Pay Later) ? What are its benefits?
 BSPL (Buy Stocks Pay Later)  is a leveraged trading facility. You can create positions under this product that can be squared off or converted to delivery (C2D) till T+275 day (T= being Trade date) on or before the specified time. The said facility will be available to the customers ...
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What will be the impact on the margin blocked if I/HDFC securities square off the BSPL (Buy Stocks Pay Later) position?

Margin will be released after deducting loss on square off (if any) and this limit can be utilized for trading in other equity product

What will be the impact on my limits if I convert an BSPL (Buy Stocks Pay Later) trade into delivery?
You can convert an BSPL (Buy Stocks Pay Later) trade into delivery only if you have adequate cash limits. You can also mark hold on additional funds from your linked Savings account. Example: You buy 100 shares of ABC at the rate of Rs. 2500 under BSPL (Buy Stocks Pay Later). Limit utilize...
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List of Stocks/ETFs in BSPL

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